Republicans pitch $568bn plan for infrastructure
Republican leaders in the US Senate are countering President Joe Biden's plan for a major infrastructure bill with a smaller $568bn package that would mostly focus on roads and bridges, without raising taxes on corporations.
Republicans say their plan would be fully paid for, by imposing new user fees and repurposing funds from earlier Covid-19 relief bills. But the plan as drafted is unlikely to draw significant interest from Democratic leaders, who see Biden's competing $2 trillion infrastructure plan as their best chance to address climate change, revive manufacturing, support electric vehicles and achieve a more equitable tax code.
The plan from Senate Republicans would direct $299bn toward roads and bridges, $61bn on public transit, $44bn on airports, $20bn on rail and $17bn for ports and inland waterways. The proposal offers more than twice as much funding for roads and bridges as the White House plan, and also higher levels of funding for airports and ports.
But the Republican plan lacks hundreds of billions of dollars that Biden is requesting for electric vehicles, manufacturing, subsidized housing, new schools, electric transmission, renewable energy, research and development, and workforce retraining. Republicans say those programs should not be part of a bill meant to focus on infrastructure.
Republicans have not released a breakdown on how they will pay for their infrastructure plan, but they have already ruled out raising fuel taxes set at 18.4¢/USG for gasoline and 24.4¢/USG for diesel that have not changed since 1993. US senator Shelley Moore Capito (R-West Virginia) said some of the new user fees would target electric vehicles, hybrids and alternative fuel vehicles.
"That does not mean raising the gas tax, that means looking at user fees and users of our infrastructure that to this point have not paid, or paid very little," Capito told reporters today.
But the amount of revenue that could be raised from vehicles now exempt from fuel taxes is likely to be relatively small in the near-term. By 2030, electric, plug-in hybrid, hydrogen and propane passenger vehicles are projected to account for fewer than 2pc of vehicles on the road, up from less than 1pc today, according to the US Energy Information Administration.
Democratic lawmakers this week started holding hearings on their infrastructure plan, which they want to be paid for mainly by raising corporate tax rates to 28pc from 21pc. US senator Joe Manchin (D-West Virginia) has been adamantly opposed to increasing user fees that would fall on lower-income families and has raised concerns with other potential revenue sources like carbon tax.
"Putting a higher tax on something, that is not going to fix it," Manchin said earlier this week.
Even if Democrats largely reject the Republican infrastructure plan, it could kick-start talks on areas of agreement for infrastructure. Biden is continuing to push lawmakers to move forward on negotiations and drafting legislation, touting his package during a global summit focused on addressing climate change.
"I have proposed a huge investment in American infrastructure and American innovation to tap the economic opportunity that climate change presents our workers and our communities, especially those too often that have been left out and left behind," Biden said.
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Slew of US mill outages to have mixed impacts
Slew of US mill outages to have mixed impacts
Houston, 16 August (Argus) — Upcoming US steel mill outages — primarily at electric arc furnace mill (EAFs) — through the year-end are expected to be more pronounced on the scrap market, as sagging flat and long products demand is expected to help mute any direct impacts on the steel market. Argus tracked a total of 35 flat and long product mill outages planned for between August-November, which are estimated to result in a loss of about 1.5mn short tons (st) of steel production — 87pc of which is EAF-produced. Flat mill outages are estimated to be at a minimum of 923,725 between September and November, with the bulk of the maintenance outages — 50pc — in October. Of the total figure, an estimated 87,100st are at plate mills. Nearly 600,000st of long product production — including rebar, wire rod, merchant bar and special bar quality steel — are expected to be off line between August and November. There are numerous other outages heard at specialty steel or ductile pipe mills which were not included in Argus ' current analysis. Shutdowns to curb scrap demand Demand for ferrous scrap in the US market may be dented in the coming months by the cumulative impact of the downtime. The outages are expected to greatly reduce mills' scrap buying programs and could weigh on prices, even as flat-rolled steelmakers attempt to establish a price floor on hot-rolled coil (HRC) markets. Impacts from scheduled shutdowns could also be compounded by recent weakness in the ferrous scrap export market. Market participants' opinions remained mixed on September scrap pricing, but many have noted sentiment has begun to sway, with prices likely now more exposed to more downside than initially anticipated following the August trade. Collection rates will be key in determining whether scrap prices retreat, as inbound flows through the summer have been spotty and supply-side factors have been one of the primary drivers behind price recent stability. US domestic scrap prices have largely been stagnant the last two months following a steady decline in prices during the early part of the year. Argus -assessed national average #1 busheling prices delivered consumer stood at $373/gross ton (gt) in August, the lowest figure since January 2023. Average prime scrap prices fell by $43/gt month in September 2023 on the month, before rebounding in November during a similar period of mass mill outages . Tepid demand keeping steel impacts at bay The upcoming outages at flat and long steel mills in the US and Canada are expected to have less of an impact on the spot market this year than in 2023 amid sluggish demand in steel-consuming sectors year to date. The fourth-quarter total flat-rolled outages will be less than the 1.04-1.09mn st of estimated outages recorded in the same three-month period of 2023, of which 80,300st were plate. These outages — combined with tight inventories — eventually raised lead times and prices. Many flat steel service centers this year have reported reduced customer consumption forecasts for the rest of 2024, with some down by 10pc or more. Construction — a primary consumer of rebar — has remained relatively stagnant in the US since January. While some projects funded by the Infrastructure Investment and Jobs Act (IIJA) and CHIPS Act entering construction phases have been reflected in spending, high interest rates and uncertainty around November's general election have kept the wave of demand originally expected — as well as seasonal demand — largely at bay. About $2.15bn in total construction spend was reported in June by the US Census Bureau, up from $2.12bn in January and $2bn in June 2023. Non-residential construction spend rose slightly to $1.208bn from $1.206bn in January and rose from $1.15bn in June 2023. Long steelmaker CMC in its quarterly earnings reported lowered rebar shipments of 520,000st in the quarter ended 31 May, from 539,000st in the prior-year quarter. Steelmaker Nucor reported shipping 2mn st of bars in the second quarter, down from 2.1mn st in the same quarter last year. The heavy equipment industry has also reported worsening steel demand. Manufacturer CNH Industrial cut second-half 2024 agricultural equipment production by 25pc compared to the same period last year, while cutting production of its construction equipment by 20pc. By Rye Druzin, Brad MacAulay, James Marshall and Marialuisa Rincon Steel outages August-November st Month Company Mill location Product Estimated duration Estimated production impact August Evraz Pueblo Long 14 days 42,192 Gerdau Monroe Long 17 days 35,910 Nucor Sedalia Long 7 days 8,630 Nucor Jewett Long 14 days 11,507 September Cleveland-Cliffs Coatesville Flat 5 days 10,959 Cleveland-Cliffs Riverdale Flat 21 days 40,273 CMC Durant Long 14 days 14,575 Evraz Regina Flat 14 days 46,027 Gerdau Ft Smith Long 14 days 21,096 Liberty Peoria Long 14 days 26,849 Nucor Crawfordsville Flat 14 days 95,890 Nucor Decatur Flat 7 days 46,027 Nucor Gallatin Flat 7 days 53,698 Nucor Jewett Long 14 days 11,507 Nucor Kanakakee Long 7 days 16,877 Nucor Plymouth Long 28 days 75,945 Nucor Seattle Long 7 days 14,959 SSAB Iowa Flat 21-28 days 76,118-101,490 Stelco Hamilton Flat 3 days 21,370 October Arkansas Steel Newport Long 21 days 17,260 Big River Steel Osceola Flat 10 days 90,411 Gerdau Midlothian Long 28 days 115,068 Gerdau Charlotte Long 14 days 17,260 Gerdau Jackson Long 14 days 23,014 JSW Mingo Junction Flat 7 days 31,701 Nucor Berkeley Flat 7 days 65,953 Nucor Norfolk Long 14 days 37,973 Nucor Hickman Flat 4 days 28,997 SDI Butler Flat 4 days 35,068 SDI Columbia City Long 5-6 days 37,369 SDI Sinton Flat 4 days 32,877 Tenaris Koppel Long 35 days 57,534 US Steel Mon Valley Flat 19 days 150,959 November NSBS Delta Flat 7 days 62,329 SDI Columbus Flat 4 days 35,068 Total Flat 923,725 Long 585,525 Total 1,509,250 Outages are based on market feedback and confirmation where possible.Tonnage counts are calculated as (nameplate capacity/365)length of the outage.The total outage tonnage count is based on the minimum number of days at mills with multiple lengths listed. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
India starts AD probe into steel imports from Vietnam
India starts AD probe into steel imports from Vietnam
Mumbai, 16 August (Argus) — India has started an anti-dumping (AD) investigation into hot-rolled coil (HRC) imports from Vietnam. The probe covers hot-rolled flat products of alloy or non-alloy steel originating in or exported from Vietnam, according to a notification by the directorate general of trade remedies (DGTR). The products fall under the HS codes 7208, 7211, 7225 and 7226. The Indian Steel Association had filed an application on behalf of domestic steel producers JSW Steel and ArcelorMittal Nippon Steel, seeking a probe into imports from Vietnam, according to the DGTR, which is the government's investigative agency. The steelmakers allege the products are being imported at "dumped prices" and have sought an AD duty, claiming they pressure local prices and hurt domestic producers' market share, profits and return on investment. The DGTR said it has considered information provided by the steelmakers to assess injury to the domestic industry, noting an increase in the volume of imports from Vietnam and the depressing effect on domestic prices. "There is sufficient prima facie evidence that the domestic industry has suffered material injury and there is a threat of injury due to dumped imports from the subject country to justify the initiation of the anti-dumping investigation," the agency said. Finished steel imports from Vietnam more than doubled on the year to 737,000t in the April 2023-March 2024 financial year, according to data from the steel ministry's joint plant committee. That accounted for nearly 9pc of India's total finished steel imports. The period of investigation is from 1 January 2023-31 March 2024, according to the DGTR. Steelmakers have requested a retrospective imposition of the AD duty, citing the risk of "irreparable damage" to the domestic industry if imports are not restricted immediately, the agency said. There was no mention of China in the DGTR's notification, although Indian steelmakers have also sought curbs on imports from China, which was the top supplier of finished steel to India in April 2023-March 2024. Import bookings have also increased in recent months, which, coupled with seasonally weak demand during monsoons, has weighed on domestic HRC prices since mid-June. The Argus weekly Indian domestic HRC assessment for 2.5-4mm material was 50,000 rupees/t ($595/t) ex-Mumbai on 16 August, down by Rs3,750/t, compared with 14 June. By Amruta Khandekar Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Thailand appoints Paetongtarn Shinawatra as new PM
Thailand appoints Paetongtarn Shinawatra as new PM
Singapore, 16 August (Argus) — Thailand appointed Paetongtarn Shinawatra as its new prime minister today, after dismissing former prime minister Srettha Thavisin for an ethical violation. Thailand's constitutional court dismissed Srettha Thavisin on 14 August for violating ethical standards by appointing a cabinet minister who was previously imprisoned. Paetongtarn Shinawatra, of the ruling Pheu Thai party, is the daughter of former ousted prime minister Thaksin Shinawatra, and was the sole candidate nominated for the position. A special parliamentary session on 16 August voted for the new prime minister, where Paetongtarn Shinawatra won 319 out of 493 votes. Thaksin Shinawatra's younger sister Yingluck Shinawatra also served as the country's prime minister from 2011-14. She fled into exile following widespread protests in 2014, which saw demonstrators seeking to overthrow the government, and the opposition claiming that the deposed Thaksin Shinawatra was still controlling the administration. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
UK steel service centre USP buys Dudley decoiler
UK steel service centre USP buys Dudley decoiler
London, 16 August (Argus) — UK-based steel service centre USP completed its eagerly awaited purchase of decoiler United Steels in Dudley on 9 August. The acquisition will increase USP's hot-rolled purchasing capacity to around 250,000 t/yr, USP chief executive Glyn Costigan told Argus . "This strategic purchase is just the next step in our ambitious plans. United Steels' brilliant range of processing capabilities for decoiling and slitting will further support planned growth and of course increase the stability of our group structure," Costigan said. The combined company will be one of the largest independent service centres in the UK. United Steels managing director Mark Unitt will receive a stake in the business, and will continue in his role as managing director. United Steels processes coils from 1,000-2,100mm wide and 0.4-25mm thick. Its profit before tax was £83,714 ($108,000) in 2023, down from over £983,000 a year earlier, according to its Companies House filings. USP was founded in 2016 by Costigan and has grown exponentially since then. It buys as much as 15,000 t/month of hot-rolled coil. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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